Quarterly report pursuant to Section 13 or 15(d)

Income Tax (Notes)

Income Tax (Notes)
3 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Income Tax
Income Tax

Our results for the first quarter of fiscal year 2018 benefited from the estimated effects of the Tax Cuts and Jobs Act (the Act), which was signed on December 22, 2017 and is effective from January 1, 2018.
Our results for the three months ended December 31, 2017 have been affected by:
A one-time "toll tax" on our undistributed and previously untaxed earnings in foreign locations, of approximately $9.5 million;
A one-time benefit from the reduction of our deferred tax liabilities of $10.6 million to reflect the new U.S. federal tax rates; and
A reduced provision for income taxes, which has resulted in a reduction to our expense of approximately $6.4 million, compared to our tax provision under previous law.
We are required to recognize the expected effects of the Act as of December 31, 2017. The calculations of deferred tax assets and liabilities and the toll tax are complicated by two factors:
Our U.S. federal income tax return for fiscal year 2017, which ended on September 30, 2017, is required to be filed on or before July 15, 2018, and certain estimates of differences between recorded amounts for financial reporting purposes and for tax reporting purposes will continue to be refined for the next several months; and
The “toll tax” requires the gathering of detailed information previously not required to be filed with our U.S. federal tax returns; both the IRS and U.S. Treasury Department will be providing interpretations and guidance over the next several months to assist tax payers in calculating the toll tax. In addition, many U.S. states continue to issue their interpretations of the Act, which may change our estimates of our charge.
Accordingly, the accounting for certain income tax effects of the Act is provisional. We believe that we have a reasonable basis for our estimates.
Our effective income tax rate for the three months ended December 31, 2017 was 24.9%. The net effect of our toll charge and reduction of deferred tax liabilities reduced the effective income tax rate by approximately 1.4%.
During the three months ended December 31, 2017 and 2016, we made income tax payments of $4.0 million and $3.7 million, respectively.